European stocks higher, Italy in focus; Dax up 0.49%

Investing.com - European stocks were higher on Monday, as Italy's new government prepared to announce its economic plan, while expectations for a rate cut by the European Central Bank persisted.

During European morning trade, the EURO STOXX 50 advanced 0.76%, France’s CAC 40 jumped 0.99%, while Germany’s DAX 30 gained 0.49%.

Italy's new economy minister, Fabrizio Saccomanni, was expected to present his economic plan to parliament later Monday, after saying in an interview that he plans to cut taxes and public spending and lower borrowing costs.

Separately, investors eyed an upcoming ECB policy meeting later in the week, amid speculation over an interest rate cut after weak German economic data last week.

Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.

Financial stocks were broadly higher, as shares in French lenders Societe Generale and BNP Paribas jumped 1.57% and 1.83%, while Germany's Deutsche Bank rallied 1.36%.

Peripheral lenders added to gains, with Spanish banks Banco Santander and BBVA surging 2.03% and 2.08% respectively, while Italy's Unicredit and Intesa Sanpaolo gained 2.60% and 3.09%.

On the downside, Bayer tumbled 1.49% after the German chemical and pharmaceutical company said it will buy Conceptus, the maker of Essure permanent birth-control device, for USD31 a share.

In London, FTSE 100 added 0.21%, as U.K. lenders tracked their European counterparts higher.

Shares in the Royal Bank of Scotland climbed 0.49% and Barclays gained 0.78%, while Lloyds Banking jumped 0.93%. HSBC Holdings underperformed on the other hand, sliding 0.39%.

Mining stocks were also on the upside, as BHP Billiton and Rio Tinto advanced 0.76% and 0.66% respectively, while copper producers Xstrata and Kazakhmys rallied 0.58% and 3.21%.

Elsewhere, Scottish fund manager Aberdeen surged 7.25% after reporting first-half adjusted pretax profit of GBP222.8 million, beating the average analyst projection of GBP211 million.

On the downside, Balfour Beatty dove 10.63% after the construction company said 2013 operating profit will be GBP50 million less than it had projected earlier.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.30% rise, S&P 500 futures signaled a 0.29% gain, while the Nasdaq 100 futures indicated a 0.31% increase.

Later in the day, the U.S. was to release a report on pending home sales.